"Our decision to disinvest was not one taken lightly and follows a year of continuous dialogue with the company, during which the EIAG put forward a number of recommendations around how corporate governance structures at News Corporation could be improved.

"However the EIAG does not feel that the company has brought about sufficient change and we have accepted its advice to disinvest."

Last year the EIAG said that the closure of the News Of The World was not a "sufficient response" to revelations of malpractice at the newspaper.